Norway's tax authorities have become much more vigilant about reporting cryptocurrency profits. Two miners of digital currencies would have failed to pay a certain amount of tax. They paid 74,000 kronor ($ 8750) on reported assets of 34 BTC ($ 218,000).
Many BTCs but few taxable assets
According to the local newspaper Dagens Næringsliv, Eriksen and Roy Arne Olsen in possession of funds from a crypto-mining activity today disappeared. They were able to raise their capital in the space of two years.
The two individuals revealed their success on the local media in their hometown of Tromso around December 2017. Their assets had reached $ 680,000 at that time. "Having millions made in cryptocurrency after two years is a fantastic feeling , " Olsen said at the time.
Roy and Eriksen's tax obligations are limited today. Norway treats Bitcoin as an action and the fiscal year has already reached its peak.
Tax declarations of cryptocurrency holdings are "often badly done"
Astrid M. Dugstad Tveter, a head of the Norwegian tax administration, stressed that individuals are obliged to report their gains or losses in digital currencies.
"The person who has bought, sold, mined or holds securities placed in virtual currency, such as Bitcoin, must report it in his tax return. The problem with the report linking the cryptocurrencies is that the tax administration does not automatically receive it from a third party, as is the case with other types of basic data. Experience shows that it is often badly done, deliberately and consciously, with such information. "Opinions on the taxation of cryptocurrencies are shared across Europe, despite the efforts of regulatory authorities to encourage increased adoption.
Dugstad Tveter added that there is a solution to Norway's tax problem.
"The tax office generally has access to information from more sources than the information we receive from taxpayers through the tax report. It uses different control methods, both in terms of tracking values and to check whether taxpayers have provided correct and complete information. "What do you think of the taxation of cryptocurrency holdings? Share your opinion in the comments section below.
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